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Prepare the steak: Pat the cube steak dry with a paper towel. Season both sides with salt and pepper.
Set up your dredging station: In one shallow bowl, whisk together the flour, paprika, garlic powder, onion powder, salt, and pepper. In another bowl, whisk together the egg and buttermilk.
Coat the steak: Dip the steak into the flour mixture, then into the egg mixture, and finally back into the flour mixture for a thick coating.
Fry the steak: Heat oil and butter in a skillet over medium heat. Fry the steak for about 3-4 minutes per side until golden brown. Remove and let rest on a paper towel-lined plate.
Make the gravy: Pour out excess oil, leaving 1 tbsp in the pan. Whisk in flour and cook for 1 minute. Slowly add milk while stirring to form a gravy. Season with salt and pepper.
Serve: Pour the gravy over the fried steak and enjoy with mashed potatoes or vegetables.